While in college, three sorority sisters decide that after graduation, they want to establish a business. Each is an MBA student but with different concentrations. Catherine is earning her MBA in Management, Charlotte in Finance, and Caprina in Marketing. While at a local bar one evening after taking a legal environment of business exam, they become intrigued by a particular idea. After conducting the appropriate market research and seeing the idea as viable, they settle on owning and operating a women-owned distillery.

They are adamant about maintaining creative and management control throughout their involvement with and ownership of the enterprise. As one put it, "the smaller the better." Among their goals is the ability, as owners, to grant management decisions to Catherine, whose MBA will be in Management, while permitting the others to concentrate on developing business ideas.

Equally important, they would like to have a business structure that (1) gives them optimal tax benefits, (2) protects their personal assets from liability, (3) allows them to collectively retain a majority of ownership as they (4) attract investors. To that end, the four aspiring business owners sought the advice of a local business attorney, and within six months of graduation, they formed their business known as C-Sweet Distillers and Brewers, using the first letter of their names and as a nod to their being the chief executives, and they establish the business in Atlanta, Georgia.

1. Based on the business objectives Catherine, Charlotte, and Caprina have, what is the best business structure for them?

2. What two steps must be taken by the owners to legally effectuate their business structure?